Chancellor John Healey is reportedly considering tax cuts for high street businesses in his first Budget, as the UK government reviews changes to how commercial property taxes are applied in England. Reports suggest that ministers are exploring reforms to the business rates system, which could exempt thousands of smaller firms from paying the tax and significantly reduce bills for many businesses throughout the current parliament. These proposals align with Prime Minister Andy Burnham’s vision of revitalizing Britain’s high streets, which he described as "a symbol of Britain’s renaissance." Burnham has emphasized the importance of listening to small businesses to drive economic growth, a focus that has shaped much of the government’s early agenda. To prepare for these changes, Treasury officials have held workshops with business groups over the past two weeks. These sessions aim to design tax incentives and support measures that could help struggling town centers recover. A key proposal involves adjusting the threshold for Small Business Rates Relief (SBRR), a policy that has not changed for a decade. Currently, businesses with properties valued at £12,000 or less are exempt from business rates. Adjusting this threshold to reflect inflation would raise it to £17,096, potentially exempting thousands of independent shops and cafes. The plan also includes gradual relief for properties valued up to £20,000. Another area of focus is the expansion of transitional relief, which is designed to ease the impact of recent property revaluations. Some businesses have seen their rates increase by as much as 80 per cent due to these changes. The current system limits annual rate increases for small businesses to 5 per cent this year, 10 per cent next year, and 25 per cent in 2028-29. The Chancellor is reportedly considering extending these phase-in periods to slow the pace of cost increases for affected businesses. The proposed tax changes are part of a larger effort to address the decline of town centers, which Burnham has described as being dominated by betting shops and vape outlets. The government has already announced a 20 per cent reduction in business rates for pubs, live music venues, and nightspots, which is expected to save venues around £1,100 annually starting in April. Business groups have welcomed these proposals, noting that high property taxes and fixed costs continue to threaten independent retail. UKHospitality, a key industry body, has been in talks with the government since January and is urging the Treasury to extend similar relief to restaurants, cafes, and hotels. Chancellor Healey is expected to highlight reducing the cost of doing business as a central theme in his first Budget, scheduled for 28 October. Alongside tax cuts, the government may introduce measures to boost public procurement and support early-stage entrepreneurs. The Treasury has not yet commented on these reports.